Earlier this month, we reported on how Illinois social service agencies are struggling to meet higher demand despite fewer federal dollars and less personal giving. Now they're adding another factor to their list of financial woes: the state's apparent inability to cut reimbursement checks. The Tribune explains:
Every year at this time, the state is typically behind in its bills by hundreds of millions of dollars. But this fall, thanks to a plummeting economy and statewide revenue shortages, Illinois' unpaid bills since July have reached $1.8 billion and are climbing as lawmakers in Springfield consider allowing the governor to tap into unused state funds to pay down the debt.
"The state has been enduring cash flow difficulties for nearly seven years because of structural budget problems that continually get ignored," said Alan Henry, spokesman for state Comptroller Dan Hynes. "A bad economy is making it worse."
The delay in state funds has reportedly reached "crisis proportions," leaving more slack than many nonprofits are able to pick up:
In a state that already spends less for the care of disabled adults and children than almost anywhere else in the country, the mounting bills are pushing many agencies to the brink.
The crunch has agencies confronting tough choices: laying off employees, cutting corners or shutting down programs altogether.
Last-minute decisions to cut or scale back state programs have created growing anxiety in the non-profit sector. One example is Food for Families. Just six months ago, Gov. Blagojevich announced that the state would contribute $5 million to food banks, such as the Greater Chicago Food Depository (GCFD), through that program. Today it's non-existent.
"Our hope is that we'll be able to continue meeting the demand," the GCFD's Bob Dolgan said, of a tough fundraising environment, which coincides with an historic amount of need. That'll likely mean turning back to private donors to make up for shortfalls. "We're aware of the tough economy, but we're still hopeful."
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